Angel Capital

Guy Kawasaki has written may good articles about venture capital and how to address the venture capitalist. Now he has an article on the art of raising angel capital.

He writes,
Make no mistake about it: There is an art to raising angel capital. Raising angel capital is not harder or easier than raising institutional venture capital–it’s simply different. Here’s how to do it.

Guy Kawasaki has made a list of eight things to think about. Here are four of them which you definitely must think of,

  • Make sure they’re sophisticated investors.Sophisticated angel investors have knowledge and expertise in your industry–they will have “been there and done that.”
  • Don’t underestimate them.Do everything on the venture capitalist wishlist because the days of angel investors as “easy marks” are gone forever
  • Understand their motivation. Typically, angel investors have a double bottom line. They’ve “made it,” so now they want to “pay back” society by helping the next generation of entrepreneurs.
  • Make your story comprehensible to a spouse.You must make it comprehensible to the angel’s husband when he asks, “What are we going to invest $100,000 into?”
  • Very good reading as his posts always are.

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